Credit Card Guide

What are Usurious?

Debts and usurious rates have been around since the creation of what has become one of man's greatest benefits and downfalls in the economic aspect of his life. As people, we are dependent on having certain material things in our lives not just for their usefulness but also to "keep up with the Joneses." Without a thought about the potential usurious rates attached to the loans and credit cards that we apply for, we move forward and in some cases fall victim to our need to have a financial hand up or "safety net."

What are usurious rates? Who benefits from usurious rates? How can you try to avoid the financial crunch that comes with being charged usurious rates? The previous are all important questions to consider before committing yourself to a loan or a credit card.

What Exactly Are Usurious Rates?

Usurious rates can best be defined as rates that greatly exceed the bounds of reason or moderation. With all loans and credit cards that we as consumers obtain we have to deal with the reality that not only do we have to pay the principal back but we also have to pay back the interest that is attached to such loans and credit card debts. Though when you first apply for a loan and read the fine print your interest rate my appear to be low thus prompting you to continue forth on getting that loan for that much needed vehicle or home repair project. With caution thrown to the wind, you sign on the dotted line and down the road at some point you discover that you are now the proud owner of not only the original loan amount but also the usurious interest rates that have been attached to it.

Who Benefits From Usurious Rates?

We all know that in order to acquire a loan, for example, that we have to plan to pay back that initial amount and then some because as we know nothing in life is free. As with all loans there is interest attached to it by the bank or lender. In some cases these rates are daunting but they are also well within the grasp of our financial means. In some cases, the lender may attach rates to your loan that fall in the usurious category. The lender profits not only from getting the original principle back but an attached interest level that is an exorbitant amount. These usurious amounts help pad their profits.

Avoiding Hardships Of Usurious Rates

The most logical and simplest way to avoid being charged anything usurious is to avoid having either a credit card or taking out a loan. In today's society where we live in a borrower's world, that is not an option for most people. If we need a vehicle and are not independently wealthy, a loan is our first course of action. With obtaining a loan and the much needed vehicle, rates that are usurious can be attached putting a strain on one's finances. What do you do then? Your best course of action is to strive to pay off the debt as quickly as possible avoiding any late payments, as rates can increase or additional usurious fees can be applied when this occurs.

Debt is a part of life in today's society. At one point or another, people search out a means to acquire those things they need and those they simply desire. Many times the loans and credit cards used to purchase these items are attached with usurious charges. Remembering to pay off debts on time and in full will help individuals from being taxed with heavy usurious rates.